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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The legal expectation is that no more than 50% of joint assets in a (intact) marriage needs to be used for care - of the one person.

No need to divorce. Spend-down and document the 50%[/quote]

You are referring to something called Spousal Impoverishment protection.

https://www.medicaid.gov/medicaid/eligibility/spousal-impoverishment/index.html

[quote]The expense of nursing home care — which ranges from $5,000 to $8,000 a month or more — can rapidly deplete the lifetime savings of elderly couples. In 1988, Congress enacted provisions to prevent what has come to be called "spousal impoverishment," leaving the spouse who is still living at home in the community with little or no income or resources. These provisions help ensure that this situation will not occur and that community spouses are able to live out their lives with independence and dignity.[/quote]

Each state can make its own requirement for how many assets and how much income the "community spouse" can keep for themselves and how much they need to use to pay for nursing home care. But the federal government sets minimum and maximum values states can use.

https://www.medicaid.gov/federal-policy-guidance/downloads/cib11152024.pdf

[b]Community Spouse Resources:[/b]
Minimum Resource Standard:  $31,584
Maximum Resource Standard $157,920

[b]Home Equity Limits:[/b]
Minimum: $730,000
Maximum: $1,097,000

So no, it is not true that the community spouse can keep 50% of their retirement and other assets.  They can keep, at most, $157,920 of their retirement assets.

If you have saved $1,000,000 together as a married couple to serve you through retirement - your better bet is to divorce and split that retirement account so the community spouse can keep $500,000 of it for her own retirement needs.

[/quote]

Here are the spousal impoverishment rules in Maryland:

https://www.medicaidplanningassistance.org/medicaid-eligibility-maryland

[quote][b]Treatment of Assets for a Couple[/b]
All assets of a married couple are considered jointly owned (regardless of the long-term care Medicaid program for which one or both spouses is applying). Spousal Impoverishment Rules, however, permit the non-applicant spouse of a Nursing Home Medicaid or Waiver applicant a Community Spouse Resource Allowance (CSRA). In 2025, the community spouse (the non-applicant spouse) can retain 50% of the couple’s assets, up to a maximum of $157,920. If the non-applicant’s share of the assets falls under $31,584, 100% of the assets, up to $31,584 can be retained by the non-applicant.

[b]Maryland Medicaid Home Exemption Rules[/b]
For home exemption, the Medicaid applicant or their spouse must live in their home. [b]If there is no spouse in the home[/b], there is a home equity interest limit of $730,000 (in 2025). Home equity is the value of the home after subtracting any outstanding debt against it. Equity interest is the amount of home equity owned by the applicant. Furthermore, if neither the applicant nor their spouse live in the home, the applicant must have Intent to Return. Note: For Regular Medicaid, there is no home equity interest limit. Other exemptions exist.[/quote][/quote]

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